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5 tips to avoid hidden credit card fees

(BPT) - Many consumers are trying to be
wiser with their credit cards. They avoid splurging on gifts during
the holiday season. They don’t apply for a store credit card every
time they’re offered 10 percent off their purchase. Yet hidden
charges and overlooked terms and conditions might be covertly padding
some consumer credit card balances.

Annual fees are rising. On average,
Americans paid more than $17 for these fees last year, up 70 percent
from $10 in 2010, according to CardHub.com. Average maximum late fees
also have risen to more than $35 over the same period.

“Many people are using credit
responsibly — they’re working hard to keep balances down, but
they may be undermining that effort over time by overlooking the fine
print,” says Mikel Van Cleve, USAA personal finance advice
director.

When evaluating cards for unnecessary
fees, he says to first make sure it doesn’t charge a fee for
something you do often.

Changes in APR. Many
cards offer an attractive “introductory” interest rate but may
hike the rate up significantly after the promotion expires. If you
plan on keeping a balance on the card, make sure you look for a card
with a low A PR after the introductory rate expires.

Penalties on late payments.
Credit cards often have a penalty APR when you pay late. Check out
the terms of your account to ensure you aren’t getting an interest
rate hike due to a late payment.

Balance transfer fees.
Credit cards usually come with a fee to move a balance from another
card. Make sure you know the cost of transferring the balance. Often
people move a balance to another card with a lower interest only to
learn that they’ve lost the savings to a balance transfer fee.

Reward terms. Understand
the terms of your credit card so you don't lose points or cash
rewards because of a late payment or expiration date. It's also smart
to know what incentives and special offers are available with your
card. Focused on airline miles? See if booking hotel rooms and rental
cars with your card earns you more miles, for instance.

Hidden costs for cash advances.
Some cards have higher interest rates for cash advances than
regular purchases. Before withdrawing cash, make sure you know the
true cost of getting that extra cash.

This kind of fine print is commonplace,
so it’s important to understand what fees are on your card and how
your spending habits impact the additional fees you can pay. Choose
your cards wisely, and you should be able to find a card that fits
your needs without paying a fortune in fees.